VAT Fraud

Basic interventions: input tax interventions: supporting a claim to input tax: where the VAT invoice held is deemed to be invalid: what constitutes a valid VAT invoice

Basics

Articles 226 and 226(b) of Directive 2006/112 sets out what details are required on a VAT invoice, be it a full VAT invoice or a retailers’ invoice. These articles have been implemented into UK law via Regulations 14 and 16 of the VAT Regulations 1995 (SI 1995/2518).

Sections 16 of Notice 700 The VAT Guide and VIT11500 of the Input Tax guidance manual set out the general rules with regard to VAT invoices. Paragraph 16.3 of the notice details what information is required on a VAT invoice.

Invoices issued where the consideration for the supply does not exceed £250

Where the consideration for the supply does not exceed £250 a VAT registered retailer does not need to issue a VAT invoice, unless requested by the customer who is a taxable person.

In circumstances where a VAT invoice is requested a ‘less detailed’ or ‘modified’ VAT invoice can be issued (see paragraph 16.6 of Notice 700).

Invoices issued where the consideration for the supply exceeds £250

Where the consideration for the supply exceeds £250 a full VAT invoice must be issued or, where the customer agrees, a ‘modified’ VAT invoice can be issued. It should be noted that a ‘modified’ invoice is a full VAT invoice with certain modifications (see paragraphs 16.3 and 16.6.2 of Notice 700).

A ‘modified’ invoice is not a ‘less detailed’ or ‘simplified’ invoice.